The Indian government is reportedly considering the introduction of an incentive program aimed at promoting the recycling of critical minerals, a move that could potentially benefit companies like Gravita India .

Potential Policy Support for Critical Minerals Recycling

According to recent reports, the government is exploring ways to encourage the recycling of critical minerals through an incentive program. This development has been linked to Gravita India, a leading recycling company, suggesting that the sector might receive policy support in the near future.

Critical minerals, which are essential for various high-tech and green technologies, have become increasingly important in the global supply chain. The proposed incentive program could play a crucial role in promoting sustainable practices and reducing dependence on primary mineral extraction.

Implications for Gravita India

Gravita India, a prominent player in the recycling industry, stands to potentially benefit from this government initiative. The company specializes in recycling lead and other non-ferrous metals, which are considered critical in various industrial applications.

While specific details of the proposed incentive program are yet to be announced, such a move could provide a significant boost to Gravita's operations and potentially enhance its market position in the recycling sector.

Recent Investor Engagements

In related news, Gravita India has been actively engaging with institutional investors. According to the company's latest LODR (Listing Obligations and Disclosure Requirements) filings, Gravita's executives participated in one-on-one meetings with institutional investors.

The company stated that these meetings did not involve the sharing of any unpublished price-sensitive information. Investors interested in learning more about these engagements can access the presentation made to analysts and investors on Gravita India's official website.

As the recycling industry awaits further details on the government's proposed incentive program, stakeholders will be closely monitoring its potential impact on companies like Gravita India and the broader critical minerals recycling sector.

Gravita India , a leading recycling company, has reported strong financial results for the first quarter, demonstrating significant growth across key metrics and reaffirming its ambitious expansion plans.

Financial Highlights

• Revenue surged by 15% year-on-year to INR 1,040.00 crores
• Profit After Tax (PAT) witnessed a remarkable 39% increase, reaching INR 93.26 crores
• EBITDA grew by 22% to INR 111.70 crores, with margins holding steady at 10.74%
• PAT margin improved to 8.97%

Operational Performance

• Total volumes grew by 12% compared to the same quarter last year
• Value-added products contributed 47% to the total revenue, inching closer to the company's VISION 2029 target of 50%
• EBITDA per ton improved across all segments:

Expansion Plans and Future Outlook

Gravita India has outlined an ambitious growth strategy, targeting a capacity of 7 lakh metric tons per annum by FY28. The company plans to invest INR 1,500.00 crores in capex through FY28, with INR 1,000.00 crores allocated to existing business lines and the remainder for emerging verticals.

Key points of the expansion plan include:

• Current capacity stands at 3.40 lakh metric tons per annum
• Aim to add 100,000 metric tons capacity this fiscal year, primarily in lead, rubber, and lithium-ion recycling segments
• A pilot lithium-ion battery recycling unit in Mundra is expected to be operational in Q2

Management Commentary

Yogesh Malhotra, Whole Time Director and CEO of Gravita India, commented on the results, stating, "Gravita has made an excellent start to the fiscal year, delivering outstanding performance across our key business segments. The company reported healthy growth in revenue, EBITDA, and PAT, reflecting the strength of our operations and the resilience of our business model."

He further added, "We are advancing steadily towards our VISION 2029, underpinned by a well-defined strategy to scale our core businesses and diversify into emerging sectors such as lithium-ion, rubber, steel, and paper recycling."

Future Targets

Gravita India has set ambitious targets for the coming years:

• Volume CAGR exceeding 25%
• Profitability growth above 35%
• Maintaining a return on invested capital above 25%
• Growing the non-lead segment to contribute over 30% of total revenue
• Deriving more than 30% of energy needs from renewable sources
• Reducing energy intensity by over 10%

The company expects sustainable lead margins of INR 19-20 per kg and aluminum margins of INR 14-15 per kg.

With its strong performance in Q1 and clear expansion plans, Gravita India appears well-positioned to capitalize on the growing recycling market and deliver value to its stakeholders in the coming years.